1449
4 min read
A type of Provident Fund (PF), the General Provident Fund, also called GPF is basically for the government employees of India. Throughout the employment period, these employees contribute a certain percentage of their salary to the GP fund account. The total amount that is accumulated in the years of employment, is provided to them at the time of retirement.
There are several types of provident funds and General Provident Fund is one of them. It can be called a saving tool for government employees. All through the years of the employment of government employees, a percentage of their salary is deducted to be contributed to the GPF account. When they retire, the GPF fund is provided to them, along with the interest amount that has been accumulated in all these years.
Also Read: What is the Voluntary Provident Fund (VPF)?
Some of the features of the General Provident Fund are mentioned herein below:
As per the GPF contribution rules, the nominee will be provided the amount only if the account holder was in service for at least five years.
Also Read: How to save tax for salary above 20 lakhs
The interest rate of GPF is 7.1% at present. The Budget Division of the Department of Economic Affairs at the Ministry of Finance issues the notification of the interest rate of GPF, which is updated each quarter. An interest rate of 7.1% is applicable in various provident funds such as
Also Read: Best policy for girl child
To open a GPF account, an individual has to meet certain eligibility criteria. Here are a few of them mentioned below:
Parameters | EPF | PPF | GPF |
Abbreviation | Employees’ Provident Fund | Public Provident Fund | General Provident Fund |
Eligibility criteria | People working in any company that has 20 or more employees | Include all the Indian resident individuals | Only Government employees |
Interest rates | 8.5% | 7.1% | 7.1% |
Maturity period | Up to 58 years of age | 15 year period | Until retirement |
Minimum Deposit range | 10% or 12% of the salary or INR 1800 | INR 500 per year | 6% of their monthly salary |
Maximum Deposit range | It is voluntary, no completion is made | INR 1.5 lakhs per year | 100% of their monthly salary |
Premature closure | Being unemployed for more than 2 months | Only after 5 years of maturity, for educational and medical purposes | If the individual quits their government job |
If you want to open a GPF account, here are some steps that you have to follow:
Related Articles:
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
A GPF, General Provident Fund is a type of Provident Fund that is only for Government employees. A certain percentage of their salary is deducted every month, which along with interest is provided to them after their retirement.
A government employee can open a GPF account. Each month a certain amount f money is deducted from the employee’s salary that is contributed to the GPF account.
A minimum of 6% of the salary to up to 100% of the salary can be contributed to a GPF account.
The maximum amount that can be contributed to a GPF account is up to 100% of the salary.
A GPF is only for Government employees, while an EPF account can be opened by any employee who works in an organization that has 20 or more employees. The interest rate of GPF is 7.1%, while the interest rate of EPF is 8.5%.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
The Social Security Pension Management Information System (SSPMIS) Mukhyamantri Vridhjan Pension Yojana is the Bihar Government’s social security scheme. This scheme was initiated to offer.
Filing the ITR within the due date is very important. By doing so, taxpayers can evade penalties and other consequences due to not filing or.
In India, many opt for life insurance as a smart move to protect themselves and their families, given the unpredictable future. It's a practical step,.
Taxpayers can claim tax deductions under section 80DDB of the Income Tax Act, 1961, on the treatment expenses of certain specified diseases. This deduction can.
In most cases, House Rent Allowance (HRA) is a part of employees' salary and they can claim an exemption for HRA. Hence, if an employee.
Taxes are important for the financial well-being and the good governance of a country. Without taxes, the functioning of the country gets disturbed. The tax.
When joining a new organization in the middle of a fiscal year, employees need to fill out Form 12B. This form informs the new employer.
Payment of Income Tax is directly related to the economy of a country. Hence, every taxpayer in India is expected to pay income tax responsibly.
You may already know that a rental income or the money earned from renting a property is subject to TDS or tax deducted at the.
We know that almost every individual owns a savings bank account. We also know that the interest earned on your savings accumulated in a savings.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue